🏡 What Is a Homeowners Association (HOA)?

An HOA (Homeowners Association) is a governing body in a residential community that enforces rules and maintains shared amenities. Members pay monthly or annual dues to support operations.

📅 When and Why It’s Used in Real Estate

HOAs are common in condominiums, planned communities, and subdivisions. They:

• Maintain common areas and landscaping
• Enforce community guidelines
• Provide services like security and amenities

Investors must consider HOA fees and rules as part of their property analysis.

📊 How It’s Calculated or Applied

HOA fees vary by community and are typically based on:

• Size of the unit or lot
• Shared maintenance costs
• Amenity usage

✅ Pros

• Keeps neighborhoods clean and maintained
• Enhances property values
• Offers shared amenities

⚠️ Cons

• Limits owner freedom with rules
• Can be costly and increase over time
• Potential for mismanagement